The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-08-28
FRISC0'S WHEAT CRASH.
THE BROKERS' REPUDIATE THEIR
AGREEMENT.

nouncement was made at / / 80 this morn
ing that Dresbach & Rosenfeld, the bnll
operators in wheat, had not Kept their
agreement to accept all the wheat rendered
them, and the call board was at once ad-
journed, without any sales being effected.
This is accepted as a complete collapse of
the wheat ring
The full signiticapce of the crash win
probably not be known for several days.
While Dresbach & Rosenfeld were supposed
to be acting for John W. Mackay. James
c. Flood and other large stockholders of the
Nevada Bank, the deals were ali made out
in their names, and all contracts were made
personally with them without any addi-
tonal guarantee.
THE AGREEMENT.
When the corner broke Aug Dresbach
q Rosenfeld agreed to pay the difference
between So OF and 81 20 perennial, or SIC.
perennial in four monthly payments, the
first payment to fall on Sept. l. The price of
wheat fell steadily to 81 30, but the bull
clique was expected to be able TO carry the
big load and an announcement was made
two days ago that the first installment of
money would be paid as agreed. The an
nouncement to-day, therefore, that the two
big brokers would repudiate their
paper was the last straw, and
was accepted as a final surrender and illus
trated that all the enormous losses, with the
exception of possibly 81, ,000, 900 advanced by
the bull clique early in the deal, is to fall
upon the brokers and others who had deal
ngs with these two representatives of the
other men whose identity has not been dis
closed. There was considerable excitement
on the street, but no failures were reported,
and while many of the big houses have been
hit very hard, the hope is expressed that
they will be able to pull through. The feel
ing is very bitter among dealers, and the
entire deal is spoken of as one of the worst
in the history of the trade.
THE STREET AT SEA.
The street is practically at sea regarding
the outcome, and few hazard an opinion.
1t is settled that firms having unsettled con
tracts with Dresbach e. Rosenfeld viii have
to bear the big losses growing out of the
deal. This afternoon John Rosenfeld filed
a deed transferring all his property, valued
at 100000, to the Nevada Bank This
is supposed to prove the connection
of that institution with it. Neither Mr..
Mackay nor Mr.. Flood could be seen at
their office to-day, and it was not expected
that they would make statement in any
event Vice President Brinker of the
Nevada Bank, declined to make a statement
of any kind.
RoSENFELDs STATEMENT.
John Rosenfield, in explanation of the
decision reached by himself and Mr.. Dres-
bach to not carry out their contracts, said:
1--WE have paid out all the money, and can
get no more accommodation at the banks,
all there is to it. Some one will
make great deal of money
out of this, for those who have the coin, l
mean people in England will be able to
pick up the wheat we are holding at a song.
II we could have gained more time we
might have pulled through, but now all is
over with us"
Continuing, Mr. Rosenfeld said "Money
has been tight all along and the real estate
boom has made it tighter and shut us off
from all accommodations
The call board has adjourned until next
Monday, but even though notice has been
given by Dresbach & RoSenfeld to sell all
wheat in their name, it is believed that the
board may be again ad djourned for an in
definite period, though how this will mend
matters does not appear As near as can
be ascertained, after returning the original
deposit money of buyers and sellers, at the
rate of 81 per ton on 1890 tons named in
the agreement Of Aug. 3D.,
and which reduced the margins
from 81 Is per GENITAL to 50 15. Dresbach &5
Rosenfed further margined down about
10000 tons to 81 20.
THE CRISIS.
They paid out large sums for this purpose
during the last few days, and to-day was
the day when the remainder fell due. 1t
would require about 100000 to meet this
part of the agreement The inability of
Dresbach 81 RoSenfeld to pay out any more
money therefore leaves about 10000 tons
of wheat " the hands of holders, standing
them in 81 05 per cental which cannot'b be
sold, except at panic prices. 1t is feared
that this will cause additional
trouble in the trade, for it involves
heavy losses upon holders who were con-
fident in the ability of Dresbach & Ro-
senfeld to meet their obligations. Ten
by Dresbach & Rosenfeld in
the hands of the directors of the Produce
Exchange as security were in fulfllment Of
an agreement of Aug 3, and about 5000
tons now remain, it having been released as
the margin money was returned. This 6,000
tons. which could not be sold to-day at
81 06 a ton, is all that the holders of 60,0J0
tons, costing 81 05 perennial or 81 ,230, 900,
have TO secure them against loss.
William Dresbach has made an assign
ment to G. B. Stone Of all his property for
the benefit of his creditors.
LIVELY TIMES EXPECTED.
The Post this afternoon says: "The feel
ing is generally prevalent that next week
will sec lively times, and failures are conf
IDENTIFY predicted. That Dresbach IL Rosen-
field ever really intended 70 fulfill their
agreement is freely secuted by members
of the board outside the influence
OF the ring, their intention being simply TO
play for time. The declaration made by
Maclxay the other day had the effect, how
ever, of establishing confidence in tine future
carrying out of contracts a. IL tended TO
confirm the general opinion that the Nevada
Bank has more intimate connection with
the deal than its managers cared
10 admit If Mackny really
meant what he said about carrying
all the wheat that was offered he has
apparently changed his mind in regard 10
supporting the individual operations of
Dresbach Il Rosenfeld Tho connection of
these gentle men, while it IL still enyeloped
in certain amount Of mystery, will proba-
bly, now have sufficient light thrown upon
il TO determine definitely who their hackers
really were. That they themselves were
simply straw men was generally ad-
mitted, IL being out OF reason
10 sIfppoSc that people of
their exceedingly limited means could posi-
bly, have carried an amount of wheat run
ming in the millions That the losers will
submit quietly 10 be pinched upon any such
proposition Is unlikely, and the consequence
will be law suits which will eventually de-
termine the quarter whence the backing
came.